Saying No to State Bailouts

Congress must make plain that American taxpayers will not protect states from the consequences of their policies.

By

Kevin Brady and

Jim DeMint

May 14, 2012 7:51 pm ET

Right now, the world is wondering if European leaders have the political will to save their economies from fiscal collapse. Defaulting on their debts would trigger a domino effect that threatens the continued existence of the European Union itself. Yet the entrenched interests of labor unions and government pensioners steadfastly refuse to accept cutbacks—even if it means taking their nations' economies down with them.

Could a similar scenario play out in the U.S.? That possibility is raised by a new study to be released Tuesday...